STiR coffee and tea magazine

36 STiR coffee and tea / Issue 2, 2017 (April/May) "We are now in our fifth wave of coffee," said Young. "There is a lot more money that has come into the artisan segment which has helped to develop a new era of chains." Millennials actively seek local roasters and demand single ori- gin beans with a compelling back story. Consumers want trace- ability in their products and are swayed by claims of socially and environmentally sustainable sourcing. Artisanal coffee shops re- sponded by expanding direct trade, building local roasteries, and sharing the story of the farmer with their clientele. As a result even quick service restaurants feature more choic- es, customizable options, and single-origin blends. "People are passionate about their coffee and both full- and quick-service restaurants, need to understand how to brew their coffee," said Senez. "Customers are much more discerning than they were 20 years ago, and they won't tolerate bad tasting products." Some high scale restaurants, says Senez, are using the French press or Chemex table side to elevate the coffee experience for their guests. "There is a new focus on the customizable, coffee-shop expe- rience," said Kyra Auffermann, NCA's manager, communication and content. "Consumers want more than a cup of coffee – they want to feel good about how they're spending their money. Con- sumers are more educated about coffee than ever before, creating a new market for innovative companies – from new brewing gadgets to delivery methods," she said. Boutique retailers such a La Colombe, Blue Bottle, and Blue- stone Lane are expanding nationally. "There is a fashion, almost cult side of coffee, and the more affluent Millennials, will be continuing to gravitate towards the more artisan venues," said Young. "It is a bit of deja vu really; we are going to continue to see more of these specialized shops shifting the coffee landscape." At the same time, the acquisitions of several coffee chains, including Stumptown, Caribou Coffee, Intelligentsia, and Peet's Tea & Coffee by JAB Holdings signals a new level of competition for the industry. To remain relevant, big players like Starbucks must continually evolve, evident in the company's investment in their reserve range and the launch of 25,500 square foot public roasteries and tasting rooms. The dramatic transformation has led gas stations, conve- nience outlets, and even supermarkets to chase a slice of the mar- ket. Fresh-brewed, quality coffee is a bare minimum. Consumers no longer settle for a regular cup of Joe — they want a customizable coffee experience. To remain competitive, coffee specialists must offer an ex- ceptional experience something that balances art and science. Move over Millennials Pragmatic, global, and socially connected (92% have a digital footprint), Generation Z already impacts the beverage industry. These individuals grew up with the internet, climate change, reces- sion, and terrorism, making them both more re- alistic and entrepreneurial than their millennial counterparts. Born between 1994 and 2010, these individuals are juicing, sipping smoothies, and al- ways have a glass or bottle of water close at hand. The generation makes up 25.9% of the US population and contributes $44 billion to the economy. By 2020 these post-millennials will ac- count for one-third of the population. They were deeply influenced by the recession of 2008 valu- ing experiences over material goods and showing signs of frugality. They work independently with 72% of teens reporting they want to someday start a business. Marcie Merriman, executive director of growth strategy at Ernst & Young says Gen Z "expects businesses, brands and, retailers to be loyal to them. If they don't feel appreciated, they're going to move on. It's not about them being loyal to the business." Generation Zs are focused on wellness, and there is already evidence of their influence in the hot beverage market place. They actively seek non-dairy products, turning away from soy to- wards less controversial beverages such as coco- nut or almond milk. They drink matcha lattes, tur- meric lattes, and enjoy non-traditional beverages like kombucha. Informed and engaged, social media savvy Gen Z reads labels looking for products with few- er ingredients. Water is currently their beverage of choice, but tea and coffee, aren't far behind. What they stay far away from is anything containing artificial including sweeteners, flavoring, excess caffeine, and preservatives. Their top pick-me-up drink is coffee, with tea a close second, reports Food Business News. Like their millennial counterparts, Generation Z wants products that respond to their values. They are brand influencers while at the same time, they strive to stand out as individuals. They are looking for coffee companies that can respond to their unique needs. They are passionate, practical, and embrace diversity, and will naturally gravitate towards companies that reflect these values. As the oldest members of Generation Z graduate from college, their entry into the coffee market presents a great opportunity for those paying attention.

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